Preserving the local: A Look into Ethical Sourcing of Extra Virgin Coconut Oil

 Highlights:

• Introduction
• Supporting smallholder farmers and reducing chemical outputs
• Protecting biodiversity through agroforestry

Sustainable sourcing refers to obtaining raw materials in an environmentally responsible, socially equitable, and economically feasible way. In the context of extra virgin coconut oil, this involves practices that make sure the production of coconut oil does not negatively impact the environment, exploit workers, or harm local communities. Instead, sustainable sourcing aspires to engage in practices that benefit everyone involved in the chain - from farmers and local communities to consumers and the environment.

Supporting smallholder farmers and reducing chemical inputs through organic farming

The small-scale farmers are often the backbone of coconut production, especially in countries like the Philippines, Indonesia, and India. Sustainable sourcing practices involve fair trade initiatives and direct trade relationships that provide these farmers with better prices for their producs. This support improves their livelihoods and incentivizes adoption of more sustainable farming practices. According to the Rainforest Alliance, farms certified under sustainability standards often see improvements in environmental practices. For example, 70% of certified farms have reported improved soil health and reduced use of harmful pesticides. Small-scale coconut farmers who participate in Fair Trade programs often receive a premium over the conventional market price. Fair Trade premiums also support local schools, healthcare facilities, or infrastructure projects, which can improve quality of life for farmers and their families. In 2023, Fair Trade International worked with organic coconut farmers in Sri Lanka to ensure that farming practices protect surrounding natural ecosystems and wildlife corridors.

Moreover, organic farming also avoids the use of genetically modified organisms (GMOs), ensuring that the production process aligns with broader environmental and health concerns. According to the USDA National Organic Program, organic certification prohibits the use of genetically modified organisms (GMOs) in farming, assuring that organic coconut oil is produced without GMOs. The reduction or elimination of chemicals minimizes their impact on local wildlife and promotes a healthier environment. A survey by the Organic Trade Association in 2022 showed that 75% of consumers prefer products labeled as non-GMO, reflecting widespread concern about the environmental and health impacts of GMOs. Research by the Center for Pesticide Reform found that organic farming can reduce pesticide residues in the environment by up to 90%, benefiting local wildlife and ecosystems.

Organic extra virgin coconut oil also commands higher prices in the market compared to conventional coconut oil. According to a study by the International Trade Centre (ITC), organic products can fetch a 30-50% price premium over non-organic counterparts. In fact, the organic segment accounted for the major share of the global extra virgin coconut oil industry in 2022 and is anticipated to keep growing in the upcoming years. The high demand for EVCO is influenced by the eco-aware choices of consumers.

Protecting biodiversity through agroforestry

One of the significant environmental benefits of sustainable sourcing in coconut oil production is the protection of natural habitats. The Coconut Farmers’ Sustainable Livelihoods Program (CFSLP) in the Philippines exemplifies how sustainable sourcing practices in the coconut industry can effectively prevent deforestation, preserve critical habitats, and maintain ecological balance. Integrating agroforestry, securing certifications, and involving communities in conservation efforts, the program has achieved significant environmental and socio-economic benefits.

Agroforestry assists organic sourcing of extra virgin coconut oil (EVCO) by integrating coconut palms with diverse tree species, which boosts soil health and fertility. Trees like legumes fix nitrogen, reducing the need for synthetic fertilizers, and their root systems prevent soil erosion and improve water retention. This encourages biodiversity, attracting natural predators that control pests, thus minimizing reliance on chemical pesticides. Additionally, agroforestry systems create more resilient ecosystems that support sustainable farming practices and help maintain ecological balance. Overall, agroforestry supports organic principles by fostering healthy soil, reducing environmental impact, and enhancing natural pest management. In 2021, the Organic Trade Association worked with farmers in Indonesia to incorporate coconut cultivation into agroforestry systems, ensuring that organic practices contribute to habitat conservation and prevent land conversion.

To sum up, ethical sourcing contributes to a more equitable and responsible future by reducing chemical inputs and adopting organic farming in the extra virgin coconut oil industry. It also preserves biodiversity and protects natural habitats by avoiding synthetic pesticides and GMOs. Moreover, it supports smallholder farmers through fair trade practices, improving their livelihoods and empowering them to adopt sustainable farming methods. The method not only conserves natural habitats but also strengthens local communities, confirming that both the environment and the people who depend on it flourish together.

To identify the prominent upcoming trends and gain insights into the extra virgin coconut oil industry’s prospects, contact our specialists today!

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